Last checked at 15 Nov 2010 10:26
PRESS RELEASE
November 15, 2010, Kyiv, Ukraine
MHP S.A.
Acquisition of grain growing facilities
MHP S.A. ("MHP", LSE ticker: "MHPC"), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, announces that it has acquired 100% of LLC Start, LLC Balance and LLC Ukraine whose principal operations are the cultivation of grain in the Khmelnytsky region of Ukraine. This acquisition adds 12,000 hectares to MHP's land bank, which will be incorporated into one of MHP's grain growing enterprises - CJSC Zernoproduct MHP.
Yuriy Kosiuk, Chief Executive Officer of MHP, said:
"This acquisition is the next step in the execution of our stated strategy of increasing our land bank. We expect to grow our land bank to 400,000 hectares in the next couple of years to meet growing internal demand for corn and sunflower as well as increasing our external sales of grain."
-Ends-
For further information please contact:
Financial Dynamics Ben Foster (London) Marc Cohen (London) Leonid Solovyev (Moscow)
For Investor Relations enquiries Anastasiia Sobotiuk (Kyiv)
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London: +44 20 7831 3113
Moscow: +7 495 795 06 23
Kyiv: +38 044 207 99 58 a.sobotyuk@mhp.com.ua |
Notes to Editors:
Information on MHP
MHP is the leading producer of poultry products in Ukraine with the greatest market share and highest brand recognition for its products. MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and grow out to processing, marketing, distribution and sales (including through MHP's franchise outlets). Vertical integration reduces MHP's dependence on suppliers and its exposure to increases in raw material prices. In addition to cost efficiency, vertical integration also allows MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale. To support its sales, MHP maintains a distribution network consisting of 11 distribution and logistical centres, within major Ukrainian cities. MHP uses its trucks for the distribution of its products, which Management believes reduces overall transportation costs and delivery times.
MHP also has a leading grain cultivation business growing corn to support the vertical integration of its chicken production and increasingly other grains, such as wheat and rape, for sale to third parties. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.
Since May 15, 2008, MHP has traded on the London Stock Exchange under the ticker symbol MHPC.
Forward-Looking Statements
This press release might contain forward-looking statements that refer to future events or forecast financial indicators for MHP S.A. Such statements do not guarantee that these are actions to be taken by MHP S.A. in the future, and estimates can be inaccurate and uncertain. Actual final indicators and results can considerably differ from those declared in any forward-looking statements. MHP S.A. does not intend to change these statements to reflect actual results.